[According to the Town of Estes Park, this opinion editorial included incorrect data on the residential utility rate. The author cited 16.3 cents per kWh. The residential rate that was proposed and passed is $0.1337. Adding the $0.01424 purchase power rider that goes to Platte River Power Authority, the total kWh charge that was proposed and passed is $0.14794 — Editor August 15]
In the debate over whether the Town of Estes Park should increase its base electrical rate, it is crucial to consider all the financial factors that affect the Power and Communication Fund.
As this utility is generating a substantial surplus, it is worth questioning the need for an increase in rates.
The surplus indicates that the utility is already well-funded and that the current rates are more than sufficient to cover operational costs, necessary improvements and even any proposed capital expenditures.
The two memos—dated July 23 and 25, 2024—state the advantages for the proposed rate increase are:
1) to maintain adequate financial strength required to operate the enterprise (this has been accomplished for the last ten years according to the annual financial statements)
2) meet our bond covenants obligations (broadband construction monies secured by power revenues, which is accomplished and shown in annual financial statements), and
3) fund projects required to improve reliability, quality and safety of our system (this is currently and easily accomplished with existing revenues and would include the installation of tree-cable covered conductors in the Allenspark area and Estes Valley).
Over the past ten years, the Power and Communications Fund has transferred surplus power funds in the amount of $15,477,796 to the general fund. Light and Power customers are subsidizing this transfer through the payment of their elevated electrical bills.
Estes customers are now paying $25 each month—soon to be $26.25 in September—as a base service charge plus the high cost of 16.3 cents per kwh, which is higher than Colorado’s average rate of 14.31 cents.
Estes purchases power from Platte River, wholesale market, and then retail sells it to us, the customers.
According to findenergy.com the cost for our neighboring towns is the following price per kwh: Longmont is 11.45; Fort Collins is 12.53; Loveland is 12.74; Greeley is 13.77; Lyons is 12.7; Boulder is 14.46 and Estes is 16.3.
The original monthly base customer charge has increased as follows: 2016 was $10.70; 2017 was $14.70; 2018 was $18.70; 2019 was $22.70; 2020 was $22.70; 2021 was $23.47; 2022 was $24.23; 2023 was $25.00 2024 is $26.25.
Neighboring communities have electric base rates as follows: Fort Collins is $11.18; Loveland is $18.20; Longmont is $16.40; Lyons is $13.00 and Estes Park will be $26.25 and now requesting annual increases of 8.5% for the next three years.
As energy customers we are paying increased dollars to both the basic monthly service charge plus the additional kwh price.
The rate study presented by NewGen Strategies and Solutions is a history and operational review of how a utility works. The study four years ago as well as this new 2024 study does not address the actual fund income and expenses or go on to explain how our utility company compares with other neighboring municipalities regarding revenues, expenses and general operation.
It is impossible for Estes residents to address their electrical costs when there is no information provided to them unless they have the facts as described above.
Where is the transparency? What is the fairness?
The proposed electrical rate increase should be denied as it is not appropriate or justified.
Thanks to Connie for bringing these figures to our attention. Will there be a response from the Town about why the rates for kwh and the base are so much higher than in neighboring towns? And why is surplus money directed to the general fund?